The DGII has clarified the implementation schedule for Law 30-26, confirming the timing of new withholding taxes, reduced late payment surcharges, higher educational expense deductions and other tax measures.
The Dominican Republic’s Directorate General of Internal Revenue (DGII) has issued Notice 10-26, setting out the implementation schedule for key provisions of Law 30-26 and confirming that several tax measures will take effect from 1 July 2026.
From that date, a 15% withholding tax will apply to royalties and payments to non-residents for software licenses, online advertising services, and data storage. The reduced late payment surcharge of 3% per month will also become effective, alongside new withholding rates under Article 309 of the Tax Code and revised tax rules for casinos, slot machines, lottery operators and sports betting businesses.
The DGII also confirmed that provisions already in force include payment agreements, early payment discounts and a tax amnesty running until 31 December 2026. A 10% capital gains tax now applies to real estate transfers by individuals, subject to an exemption for individuals over 65 selling their primary residence. The law also introduced new rules on inheritance and donations and a USD 30 departure tax.
For the 2026 fiscal year, the deduction for educational expenses has increased from 25% to 30%, rising to 50% for expenses related to persons with disabilities, autism or neurodevelopmental disorders. In addition, a 30% Corporate Income Tax rate will apply to legal entities with annual income exceeding RD$1 billion from the relevant 2026 fiscal year.
The DGII said the accelerated depreciation regime, which allows depreciation at double the normal rate for eligible new industrial equipment and machinery with a useful life of at least five years, will take effect only after a general norm is issued specifying qualifying assets. Changes to the simplified tax regime, including higher thresholds and a new small business category, also remain subject to implementing regulations.
The implementation calendar further outlines measures scheduled for 2027 through 2029, including changes to Individual Income Tax, advance payment rules, life insurance tax rates and the gradual repeal of certain taxes.
Earlier, the Dominican Republic enacted Law 30-26, introducing wide-ranging tax reforms that include a temporary corporate income tax increase for large taxpayers, changes to Individual Tax, ITBIS and ISC, revised tax administration rules, and new sector-specific fiscal measures.
